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Milestone One
A-CAT Corp: Forecasting Kirsten Langdon

I. Scenario
Organization and History- A-CAT has been in operation since 1986 and is one of the leading producers of electrical appliances in India. The company offers nearly 100 different models of various electrical appliances for household use and competes in a medium scale industry, distributing their products to a rural population of India.(Sharma, 2013) The “primary flagship product” of A-CAT are the voltage regulators. Voltage regulators have a variety of purposes but are most commonly used as protective devices for refrigerators and television sets, protecting them from load fluctuations and/or power failures. (Sharma, 2013) Aside from being a producer, A-Cat is also committed to the pursuit of a quality control program to monitor the quality of its transformers.
Introduction to the Problem-
A large number of products manufactured and sold by A-CAT, such as the voltage regulator, require a transformer as one of their principal and primary components; and another large percentage of products such as TVs, refrigerators, washing machines and other white goods use voltage regulators as a guard against potential voltage fluctuations. (Sharma, 2013) Due to the large amount of products that use transformers as a vital part of functioning, the store managers always tried to keep a good quantity of spare transformers as a buffer. Unfortunately, during the past few months, the sales of the voltage regulator have decreased and ordering/storing too many transformers exposes the capacity constraints of the supplier’s and can also lead to a substantial tie-up of the company’s cash reserves. (Sharma, 2013) This freeze of the company’s capital has a domino effect on the purchasing and inventory of other A-Cat products.
A few of the functional department heads at A-Cat are questioning keeping a

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